As one of the comments says after this piece, 'Isn't this basically what the Japanese did to foster the "last decade"?' More 'easing', more 'stimulus' is clearly not the answer or it would have worked by now. What this seems to show is that the Fed is more or less out of bullets and things are going to start to unfold rapidly.
One quote that really caught my attention was the following:
QUOTE: "Costs to protect debt from Bank of America, Citigroup and Wells Fargo rose after the downgrades by Moody’s, which said U.S. support is less likely in an emergency. Credit-default swaps tied to Bank of America added about 40 basis points from yesterday to 375 basis points as of 3:41 p.m. in New York, according to broker Phoenix Partners Group. Swaps on Wells Fargo jumped to the highest since July 2009, climbing 17 basis points to 143 basis points, Phoenix prices show. Contracts on Citigroup rose 19 to 250, according to data provider CMA"
That means they're calculating that there will not be big bailouts for the major banks this time around. If you have accounts with any of those companies keep that fact in mind.